GRMN: Garmin will be obsolete in the long run

I do not agree with you, as the other fellows have told you, Garmin is a company that not only sells navigation systems to cars... and the systems in cars are also part of Garmin, I do not think that they will be snuffed out completely.

Garmin produces much more than navigation systems for cars. They produce all sorts of systems now including ones for bike trails, running trails, hunting grounds, and ones for planes and boats. As the price of preinstalled systems in cars falls there is no doubt that Garmin must prove itself to be innovative and flexible, but I think they will be. They are diversified enough now so it won't completely kill their profit margin when preinstalled systems' prices fall. They will find a niche if they maintain the competitive advantage they currently have in the navigation technologies market. They will either license the software for the preinstalled systems or make the preinstalled systems carry the Garmin name. They will find a way to keep their profits strong.

Who do you think is selling pre-installed navigation units to automotive companies? Garmin just signed with Suzuki to put their product in one of their models. If they see a slow down of consumer spending for in-dash units, they'll push into the automotive factory-installed market. The car companies aren't going to make their own units.